Indian Metals and Ferro Alloys Valuation

Q: What is the Fair Price of IMFA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IMFA (₹760.15) is trading below our estimate of [[fair value]] (₹4358.53)

Is IMFA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IMFA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IMFA (₹760.15) is trading below our estimate of fair value (₹4358.53)

Significantly Below Fair Value: IMFA is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IMFA?

Key metric: As IMFA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IMFA. This is calculated by dividing IMFA's market cap by their current earnings.
What is IMFA's PE Ratio?
PE Ratio	9.5x
Earnings	₹4.33b
Market Cap	₹40.96b

IMFA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	5.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does IMFA's PE Ratio compare to its peers?

The above table shows the PE ratio for IMFA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	55.2x
522285 Jayaswal Neco Industries	150.3x	n/a	₹37.4b
500235 Kalyani Steels	13.5x	n/a	₹33.6b
VENUSPIPES Venus Pipes and Tubes	33x	31.4%	₹32.8b
500404 Sunflag Iron and Steel	24.1x	n/a	₹35.6b
IMFA Indian Metals and Ferro Alloys	9.5x	n/a	₹41.0b

Price-To-Earnings vs Peers: IMFA is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (55.2x).

Price to Earnings Ratio vs Industry

How does IMFA's PE Ratio compare vs other companies in the IN Metals and Mining Industry?

9 Companies	Price / Earnings	Estimated Growth	Market Cap
590078 Maithan Alloys	3.8x	n/a	US$370.03m
526608 Electrotherm (India)	3.3x	n/a	US$148.69m
PRAKASHSTL Prakash Steelage	3.9x	n/a	US$16.85m
522165 Indsil Hydro Power and Manganese	1.7x	n/a	US$16.83m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: IMFA is good value based on its Price-To-Earnings Ratio (9.5x) compared to the Indian Metals and Mining industry average (24x).

Price to Earnings Ratio vs Fair Ratio

What is IMFA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IMFA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate IMFA's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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